Li & Fung is a Hong Kong-based global trading group, that supplies high-volume, time-sensitive consumer goods, and is a major customer of global retail giant, Wal-Mart. Garments make up around two-thirds of the Li & Fung business which also covers the sourcing of hard goods such as fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting goods and travel goods. Key officials are William Fung, executive chairman, and Bruce Rockowitz, president and chief executive.
Companies have already announced US$26 billion of transactions to be taken private by a related party this year, up about 2,500 per cent from the same period in 2019, according to data compiled by Bloomberg.
Asia’s third-largest equity bourse is trading at the third-lowest valuation across the region’s 14 markets, weighed down by a recession mired in the coronavirus pandemic and almost a year of anti-government protests, creating the perfect conditions for more take-private proposals.
Hong Kong’s Fung family and Singapore’s GLP Group have made a HK$7.2 billion offer to privatise 114-year-old global merchandise supply chain manager Li & Fung at a price premium of 150 per cent.
Increasing clarity about the relationship between the US and China in light of a phase one deal should help foster global trade this year, Li & Fung chairman says.
The honorary chairman of Li & Fung has won the Lifetime Achievement Award at this year’s DHL-SCMP Hong Kong Business Awards for his devotion to tackling global challenges
The century-old Hong Kong company, founded by Fung’s grandfather Fung Pak-liu, was a beneficiary of China’s rapid rise as the world’s factory, supply global consumers with everything from clothing and apparels to shoes, toys and furniture. Its earnings slump is emblematic of the city’s economic position has come under challenge by the year-long US-China trade war.
Spencer Fung, CEO of the 113-year-old Hong Kong company, says the supply chain shift away from China is benefiting countries like Vietnam, Bangladesh, Indonesia and India.
Hong Kong giant reported a 20 per cent year on year decline in core operating profit to US$285 million, but above consensus estimate of US$270 million
Toys ‘R’ Us Asia, which completed its separation from its indebted former US parent firm in November, plans to open 60 new stores in Asia in 2019. Most of these will be in China, its biggest growth market, as well as in Japan, Malaysia and Singapore.
Global Brands Group, the licensee of Juicy Couture and Calvin Klein, has cut its overall production in China from 60 per cent to 39 per cent, says CEO Rick Darling
Global Brands Group said the asset disposal is aimed at reducing debt largely left over from its 2014 spin-off